COMMERCIAL ASSET FINANCE
This fund is geared towards assisting Small, Medium and Micro Enterprises
(SMMEs) and Co-operatives to purchase assets required in order to operate and
Products offered under this fund include:
- Asset Acquisition Finance
- Instalment Sale Agreement (ISA):
- An Instalment Sale Agreement (ISA) is a transaction where goods
are purchased on credit, and the right of ownership is obtained upon
payment of a series of predetermined instalments over a
- This product is offered to clients, juristic and non-juristic
entities, who wish to acquire assets for their business use and
require the ownership of such assets at the end of the finance term.
The instalment sale agreement will provide that the ownership of the
underlying asset is reserved in the name of the client until the
full outstanding amount is repaid.
- The agreements may be regulated or non-regulated by the NCA
depending on the legal status of the client and the size of the
- Marine Finance:
- Asset Based Credit Facilities (Term Loan), offered to clients
(juristic and non-juristic entities) for the purchase of commercial
boats registered within South Africa.
- Aircraft Finance
- The financing of aircraft (Term Loan) is highly specialised and
additional information, over and above the normal credit
requirements, with regard to the aircraft that is being financed, is
- Asset Based Credit Facilities, offered to juristic and
non-juristic entities for the purchase of light- passenger and –
commercial aircraft – Only Special Aviation term loan agreement,
supported by an Aviation bond will be considered. No ISA, Lease or
Rental products will be considered for Aircraft finance.
- Credit Lines
Whilst a credit line is not regarded as a specific product, there are
guidelines when considering such facility types.
- The financial position and proven cash flow of the client is the
prime consideration rather than the underlying asset;
- The client must have a need for such facilities i.e. the frequent
replacement of assets that support the business;
- The client’s capital budget and or replacement program must reflect
the need for a Credit Line;
- Once-off expansions should not be catered for within a credit line;
- Credit lines as a marketing tool must be limited to clients with a
strong capital base;
- Due to unique risks per transaction, no buy/sell, private sales,
specialised assets, interim contracts as well as imported assets should
form part of Credit Line facilities;
- Assets to be purchased must be clearly defined in terms of type:
- Yellow Goods, Trucks, Trailers, Computer Hardware etc. and
possible limitations per asset type;
- New or used with an age limitation to used assets;
- Maximum term of finance per asset type and age;
- Deposit per asset type.
- Suppliers should be limited to CAF preferred and approved suppliers.
- The treatment of Vat is to be specified i.e. paid up-front, repaid
over the first six (6) months of the contract etc.
- Working Capital Finance Term Loan
- A term loan is a once-off core-lending product, for low to medium
risk customers, offering a loan facility for a specific term, with a
specified payment and with a structured repayment schedule.
- Negotiable repayment terms vary from 1 to 60 months depending on the
purpose of the loan. The term of the loan must be aligned to the purpose
of said loan.
- Any business setup costs and operating costs that are required by
the customer for business purposes must preferably be made available on
a term loan basis.
- Working Capital Finance Revolving Loan
This loan has all the characteristics of a Working Capital Term Loan
however this is made available to the client on a continuous basis as a
- Revolving Facility is reviewed in line with term financed to